Non-Resident Taxpayer (special cases under GST Registration) are those suppliers of goods or services or both, who have come for a short period to make supplies in India without having any business establishments here. They import products to make local supplies. Therefore, they will be allowed to avail Input Tax Credit only on IGST paid on imports. However, other taxpayers can take credit for supplies made by them and file in Form GSTR 5.

There are two categories of such taxpayers

Casual Taxpayers

  • These taxpayers are Resident in India but do not have a fixed place of business in the state where they do business.
  • It is generally the supply of goods and/or services for a short duration say 1-12 weeks but not more than 90 days.

Example: Traders coming for the supply of goods and/or services in trade fares.

Non-resident Taxpayers

  • These taxpayers are not Residents of India
  • They also do not have a fixed place of business in India and are therefore Non-Resident taxable persons.

Example: Consultants with specialized skills coming for designing the Residential/commercial projects for Builders.

Registration

  • A non-resident taxable person shall not apply in a normal application for registration that is filed by other taxpayers.
  • They shall fill a simplified form GST REG-09
Every person or business who falls under the definition covered above needs to apply for registration at least five days prior to the commencement of business.

Returns

The Non-Resident Taxpayer has to file a return in FORM GSTR-5 electronically through the Common Portal of GST.

Due Date of return filing for Non-Resident Taxpayer

A Non-Resident Taxpayer shall file the return in form GSTR 5 for the period for which he/ she has obtained registration:

  • within a period of 7 days after the date of expiry of registration; or
  • file monthly before 20th of the following month.

Input Tax Credit

  • A non-resident taxable person shall not avail any input tax credit in respect of goods or services except on those imported by him.
  • Therefore, the taxes paid by a non-resident taxable person shall be available as credit to the respective recipients.

You can use our GST software for doing end-to-end GST compliance.